Stock dividends

Bibliographic data

Monograph

Identifikator:: 175754061X

URN:: urn:nbn:de:zbw-retromon-136496

Document type:: Monograph

Title:: Stock dividends

Place of publication:: Washington

Publisher:: U.S. Gov. Print. Off.

Year of publication:: 1927

Scope:: vii, 273 S.

Digitisation:: 2021

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Importance of stock dividends as reported by companies in financial manuals

Collection:: Economics Books

10 STOCK DIVIDENDS larger than in the seven preceding years owing to the greater number of corporations covered in the later period by such publications. Otherwise, the lists were presumably unbiased. The comparative cash, stock, and other dividends in the two periods are presented in the following table: TaBLe 6.—Cash, stock, and other dividends paid for the seven years 1913-1919 and the seven years 1920-1926 by 1,000 corporations which paid one or more stock dividends in the 14-year period 1913-1926 Kind of dividend Cash. vo snuunenes Stok. aremre] Other. . ... oul Totalei. First 7 years Amount $2, 908, 797, 623 659, 856, 048 82, 677, 880 3 651, 331. 551 Per cent of total 79. 66 18.07 2.97 A OD Second 7 years Amount wr Per cent of total $5, 035, 334, 937 3, 554, 513, 758 55 933 730 58.24 41.11 .65 S. 545. 52. 425 100. 00 Increase (+) or decrease (=) in second period Amount i Per cent +82, 126, 537, 314 +2, 894, 457, 710 —26. 744. 150 +73. 11 +438. 65 —32. 35 4-136. 78 4,994, 250, 874 This table would indicate that the absolute increase in stock divi- dends was about 438 per cent in the second period as compared with an increase of only 73 per cent in cash dividends. In the second period the stock dividends were about 41 per cent of total dividends. In the first period they were about 18 per cent. This group, it will be noted, while composing less than 10 per cent of the 10,528 corpora- tions reporting stock dividends in the 14 years, paid over 70 per cent of the total dividends reported by the former group in the first seven years and over 60 per cent of those reported in the second period. In view of the method of selection and the size of the sample em- ployed these ratios of stock and cash to total dividends, and the per- centages of increase in such dividends constitute apparently the safest basis for estimating the relative increase in importance of stock dividends since the Supreme Court decision. Even these ratios should be used with care, however, since the sample employed is still presumably somewhat biased through the greater comprehensive- ness of financial manual data in recent years. RELATION OF DIVIDENDS TO SURPLUS A full appreciation of the change that has taken place in corpora- tion dividend policy since the Supreme Court decision, however, can not be obtained from a comparison of the cash and stock divi- dends paid in each period either with each other or with the total dividends. In order to thoroughly comprehend what has taken place it is necessary to carry the analysis a step further and consider the dividends in relation to the surplus for the two periods. Surplus, as well as cash, stock, and other dividends, was reported by 2,971 corporations, including corporations paying stock dividends before as well as after the Supreme Court decision. In the following table there is presented the total distributable surplus of these cor- porations for each seven-year period, together with its disposition:

Access restriction

Copyright

fullscreen: Stock dividends

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation